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1971 04 12 CC Minutes, Special50 4967 MINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN April 12, 1971 The City Council of the City of Baytown met in special session on Monday, April 12, 1971 at 6:30 p.m., in the Baytown City Hall with the following members in attendance: David Evans Leonard Stasney Don Hullum Allen Cannon Lamar Kelley C. Glen Walker D. R. Voelkel Howard Northcutt W. R. Laughlin Edna Oliver Absent: Ted Kloesel Councilman Councilman Councilman Councilman Councilman Mayor City Manager Administrative Assn't City Attorney City Clerk City Councilman The Mayor called the meeting to order and stated that the bidding was closed for the receiving of bids on both General Obligation and Revenue Bonds for the City of Baytown. He asked Tom Masterson, a representative of our fiscal agent, to preside at the opening of the bids. The tabulation follows: Waterworks and Sanitary Sewer Revenue Bonds Name Rauscher Pierce Sc. Corp 4.5/8 1972 -85 First of Texas, Inc. 4.3/4 1986 4.80 1987 4.90 1988 5.00 1989 5.10 1990 -91 Underwood, Neuhaus & Co. Rowles, Winston & Co. Merrill Lynch, Pierce, Genner & Smith, Inc. First fouthwest Company Rotan, Mosle- Dallas Union, Inc. Initial Int Cost Premium $939,758.34 -0- ,,i Net Int. Cost Effective Int. Rate ! $939,758.34 4.94501211 % 5.1/2 1972 -77 Initial Int Cost 4.1/2 1978 -85 $942,004.17 4.80 1986 -87 4.90 1988 5.00 1989 Net Int. Cost 5.10 1990 -91 $942,004.17 5.20 4.20 4.1/2 4.80 5.00 5.20 5.00 4.1/4 4.1/2 4.3/4 5.00 1972 -79 1980 -82 Initial Int. Cos 1983 -84 $957,054.19 1985 -86 1987 -89 Net Int. Cost 1990 -91 $957,054.19 Premium -0- Effective Int. Rate 4.956830 % Cost Premium -0- Effective Int. Rate 5.036 % 1972 -80 1981 -82 Initial Int. Cost Premium 1983 -84 $943,072.91 -0- 1985-87 1988 -89 Net Int. Cost Effective Int. Rate $943,072.91 4.96245 % After having the bids checked and the figures verified, Tom Masterson recommended the acceptance of the bid of Rauscher, Pierce Securities Corporation for the $1,250,000 Waterworks and Sanitary Sewer System Revenue Bonds, Series 1971. Minutes, April 12, 1971 51 ` 4968 General Obligation Bonds First National Bank of Dallas Citizens National of Baytown Underwood, Neuhaus & Co Republic National Bank of Dallas, Mgr. 5.40 4.40 4.60 4.75 4.90 5.00 5.20 4.30 4.60 4.80 4.90 5.00 1972 -75 1976 -84 1985 -86 1987 198e 1989 -9 2 1972 -74 1975 -84 1985 -86 1987 -88 1989-90 1990 -92 5.00 1982 -81 4.5/8 1982 -87 4.3/4 1988 4.90 1989 5.00 1990 -91 4.00 1992 Initial Int. Cost $4,366,541.62 Premium $225.75 Net Int. Cost Effective Int. Rate $4,366,315.87 Initial Int. Cost $4,315,145.83 Net Int. Cost $4,315,145.83 Initial Int. Cost $4,286,108.30 4.8091 % Premium -0- Effective Int. Rate 4.752788 $ Premium -0- Net Int. Cost Effective Int. Rate $4,286,108.30 4.7208 % After having the bids checked and the figures verified, Tom Masterson recommended the acceptance of the bid of Republic National Bank of Dallas and Associates for the $6,500,000 General Obligation Bonds, Series, 1971. Ordinance - Authorizing Sale of Waterworks and Sanitary Sewer System Revenue Bonds Councilman Stasney moved to adopt Ordinance No. 1089 and accept the lowest bid of Rauscher Pierce Securities Corporation on the Waterworks and San- itary Sewer System Revenue Bonds. Councilman Evans seconded the motion. The vote follows: Ayes: Councilmen Evans, Hullum, Stasney, Cannon and Kelley Mayor Walker Nays: None The caption of the ordinance follows: ORDINANCE NO. 1089 S COVER SHEET CERTIFICATE FOR ORDINANCE AUTHORIZING ISSUANCE OF $1,250,000 WATE RgORKS AND SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 1971; APPROPRIATING $1,250,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS PROJECTS; AND CONTAINING OTHER PROVISIONS RELATING THERETO THE STATE OF TEXAS X COUNTIES OF HARRIS & CHAMBERS X CITY OF BAYTOWN X We, the undersigned officers of the City Council of the CITY OF BAYTOWN, hereby certify as follows: 1. The City Council of the CITY OF BAYTOWN convened in Special MEETING, ON THE 21TH DAY OF APRIL, 1971, in the City Hall within said City; and the roll was called of the duly constituted officers and members of said Council and the City Clerk, to wit: Glen Walker Mayor Ted Kloesel Councilman David Evans Councilman Leonard W. Stasney Councilman Allen Cannon Councilman Don M. Hullum Councilman Lamar Kelley Councilman Mrs. Edna Oliver City Clerk and all of said persons were present except the following absentees: Ted Kloesel, thus constituting a quorum. Whereupon, among other business, the 52 4969 Minutes, April 12, 1971 following was transacted at said meeting: a written ORDINANCE AUTHORIZING ISSUANCE OF $1,250,000 WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 1971; APPROPRIATING $1,250,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS PROJECTS; AND CONTAINING OTHER PROVISIONS RELATING THERETO was duly introduced for the consideration of said Council and read in full. It was then duly moved and seconded that said ordinance be adopted; and, after due discussion, said motion, carrying with it the adoption of said ordinance, prevailed and carried by the following vote: AYES: All members of said Council shown present above voted "Aye." NOES: None 2. That a true, full, and correct copy of the aforesaid ordinance adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; that said ordinance has been duly recorded in said Council's minutes of said meeting; that the above and fore- going paragraph is a true, full, and correct excerpt from said Council's minutes of said meeting pertaining to the adoption of said ordinance; that the persons named in the above and foregoing paragraph are the duly chosen, . qualified, and acting officers and members of said Council as indicated therein; that each of the officers and members of said Council was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the aforesaid meeting and that said ordinance would be introduced and considered for adoption at said meeting, and each of said officers and members consented, in advance, to the holding of said meeting for such purpose; that said meeting was open to the public as required by law; and that public notice of the time, place, and subject of said meeting was given as required by Vernon's Article 6252 -17, as amended. 3. The Mayor of said City has approved, and hereby approves, the aforesaid ordinance; the Mayor and the City Clerk of said City have duly signed said ordinance; and the Mayor and City Clerk of said City hereby declare that their signing of this certificate shall also constitute the signing of the attached and following copy of said ordinance for all pur- poses. SIGNED AND SEALED the. 12th day of April, 1971. City Clerk Mayor Minutes, April 12, 1971 5. 4970 ORDINANCE NO. 1089 ORDINANCE AUTHORIZING ISSUANCE OF $1,250,000 WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 1971; APPROPRIATING $1,250,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS PROJECTS; AND COTAINING OTHER PROVISIONS ��. RELATING THERETO THE STATE OF TEXAS 1 COUNTIES OF HARRIS & CHAMBERS X CITY OF BAYTOWN 1 WHEREAS, the bonds hereinafter authorized were duly and favorably voted, as required by the Constitution and laws of the State of Texas, at an election held in the City on the 17th day of March, 1970; and WHEREAS, the City Council now deems it advisable to issue, sell, and deliver $1,250,000 bonds as a portion and the first installment of $2,500,000 sanitary sewer system bonds voted at said election, the remaining $1,250,000 sanitary sewer system bonds to be issued, sold, and delivered later; and WHEREAS, the bonds hereinafter authorized are to be issued and delivered pursuant to Vernon's Articles 1111 through 1118; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN THAT: Section 1. Said City's negotiable, serial coupon bonds to be designated CITY OF BAYTOWN, TEXAS, WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 1971 (hereinafter sometimes called the "Bonds "), are hereby authorized to be issued and delivered in the principal amount of $1,250,000 for the purpose of IMPROVING AND EXTENDING THE CITY'S SANITARY SEWER SYSTEM. Section 2. The bonds shall be dated April 15, 1971, shall be numbered consecutively from 1 through 250, shall be in the denomination of $5,000 each, and shall mature and become due and payable serially on May 15 in each of the years, and in the amounts, respectively, as set forth in the following schedule: YEAR AMOUNT YEAR AMOUNT 1972 $ 25,000 1982 $ 25,000 1973 25,000 1983 25,000 1974 25,000 1984 25,000 1975 25,000 1985 25,000 1976 25,000 1986 25,000 1977 25,000 1987 150,000 1978 25,000 1988 150,000 1979 25,000 1989 175,000 1980 25,000 1990 200,000 1981 25,000 1991 200,000 54 4971 Minutes, April 12, 1971 Section 3. Said Bonds shall bear interest per annum at the following rates, respectively, to -wit: Bonds maturing 1972 through 19—, % Bonds maturing 19_ through 19_, % Bonds maturing 19_ through 19_, % Bonds maturing 19, through 19—, % Bonds maturing 19_ through 19—, % Bonds maturing 19 through 19 , % evidenced by interest coupons which shall appertain to said Bonds and which shall be payable on the dates indicated in the FORM OF BOND set forth in this ordinance. Section 4. The Bonds, and the interest coupons appertaining thereto, shall be payable, shall have the characteristics, and shall be signed and executed (and the Bonds shall be sealed) all as provided, and in the manner indicated, in the FORM OF BOND set forth in this ordinance. Section 5. The form of the Bonds, including the form of re- gistration certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of the Bonds, and the form of the aforesaid interest coupons which shall appertain and be attached in- itially to each of the Bonds, shall be, respectively, substantially as follows: NO. FORM OF BOND: UNITED STATES OF AMERICA STATE OF TEXAS COUNTIES OF HARRIS AND CHAMBERS CITY OF BAYTOWN, TEXAS WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BOND SERIES 1971 $5,000 ON MAY 15, , the CITY OF BAYTOWN, in the Counties of Harris and Chambers, in the State of Texas, promises to pay to bearer the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, fran the date hereof, at the rate of % Minutes, April 12, 1971 55' 4972 per annum, evidenced by interest coupons payable November 15, 1971, and semi- annually thereafter on each May 15 and November 15 while this bond is outstanding. The principal of this bond and the interest coupons appertaining hereto shall be payable to bearer, in lawful money of the United States of America, without ex- change of collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon at the FIRST CITY NATIONAL BANK OF HOUSTON, Houston, Texas, which shall be the paying agent for this series of bonds. THIS BOND is one of a series of negotiable, serial, coupon bonds, dates APRIL 15, 1971, issued in the principal amount of $1,250,000 for the purpose of IMPROVING AND EXTENDING THE CITY'S SANITARY SEWER SYSTEM in ac- cordance with Articles 1111 through 1118, Vernon's Texas Civil Statutes, as amended, and the home -rule charter of the City, and pursuant to an election held within the City on the 17th day of March, 1970, and authorized pursuant to an ordinance duly adopted by the City Council of the City entitled ORDINANCE AUTHORIZING ISSUANCE OF $1,250,000 WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 1971; APPROPRIATING $1,250,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS PROJECTS; AND CONTAINING OTHER PROVISIONS RELATING THERETO and finally passed on the 12th day of April, 1971, this bond being one of a series of bonds which constitutes a portion and the first install- ment of $2,500,000 revenue bonds voted at the aforesaid election. IT IS HEREBY certified, recited, and covenanted that this bond has been duly and validly issued and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the issuance and delivery of this bond have been performed, existed, and been done in accordance with law; and that the interest on and principal of this bond and the series of which it is a part, together with other out- standing waterworks- and sanitary- sewer - system revenue bonds of said City, are secured by and payable from an irrevocable first lien on and pledge of the Net Revenues from the operation of the City's waterworks and sanitary - sewer System, as defined and provided, or adopted by reference, in the ordinance authorizing this series of bonds. THE HOLDER hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. IN WITNESS WHEREOF, this bond and the interest coupons appertaining hereto have been signed with the facsimile signature of the Mayor and counter- signed with the facsimile signature of the City Clerk of said City, respec- tively, and the official seal of said City has been duly impressed, or placed 56 Minutes, April 12, 1971 4973 in facsimile, on this bond. XXXXXXXXXXXXXXXXX Mayor COUNTERSIGNED: XXRXXXXXXXXXXXXXXXXXXX City Clerk (SEAL) FLO 17 r Minutes, April 12, 1971 5 9979 FORM OF REGISTRATION CERTIFICATE: COMPTROLLER'S REGISTRATION CERTIFICATES 1 REGISTER NO. I hereby certify that this bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this bond hss been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal this Comptroller of Public Accounts of the State of Texas (SEAL) FORM OF INTEREST COUPON: NO. $ ON 15, 19 the CITY OF BAYTOWN, IN THE COUNTIES OF HARRIS and CHAMBERS, STATE of TEXAS, promises to pay to bearer the amount shown on this interest coupon, in law- ful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this interest coupon at the FIRST CITY NATIONAL BANK OF HOUSTON, Houston, Texas, said amount being interest due that day on the bond bearing the number hereinafter desingated of that issue of CITY OF BAYTOWN, TEXAS, WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 1971, dated April 15, 1971. The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. Bond No. XXXXXXXXXXXXXXXXXXXXX City Clerk Section 6. The Bonds are and shall be secured by and payable from an irrevocable first lien on and pledge of the Net Revenues from the operation of the City's waterworks and sanitary -sewer System, and said Net Revenues are further pledged irrevocably to the maintenance of the Bond Fund. 58 4975 Minutes, April 12, 1971 Section 7. The Bonds, and interest coupons appertaining thereto, shall constitute special obligations of the City, payable solely from the pledged Net Revenues, and the holders of the Bonds and the interest coupons attached thereto, shall never have the right to demand payment out of funds raised or to be raised by taxation. Section 8. The term "Outstanding Bonds," as used herein, shall mean the outstanding bonds of the following issues of said City: Waterworks and Sewer System Revenue Bonds, Series 1958, dated February 15, 1958, authorized by ordinance dated February 6, 1958 Waterworks and Sanitary Sewer System Revenue Bonds, Series 1966, dated February 15, 1966, authorized by ordinance dated February 24, 1966 Waterworks and Sanitary Sewer System Revenue Bonds, Series 1967, dated May 15, 1967, author- ized by ordinance dated May 25, 1967 The Bonds hereby authorized are parity "Additional Bonds," as defined and permitted in an ordinance dated May 13, 1957, whereby the City's Water- works and Sewer System Revenue Refunding Bonds, Series 1957, dated May 15, 1957 (all which bonds have now been retired both as to principal and interest) were authorized, and Sections 8.02 (a), (b), (c), and (e) and Sections 9 through 12 of said ordinance (a photocopy thereof being attached hereto, marked Exhibit A, and made a part hereof for all purposes) are hereby adopted by reference and shall be applicable to the Bonds for all purposes except to the extent hereinafter specifically modified and supplemented. The Bonds and the Outstanding Bonds are and shall be secured by and payable from a first lien on and pledge of the Net Revenues from the operation of the City's waterworks and sanitary -sewer system, and all of said obligations shall be on a parity and of equal dignity in all respects. Section 9. In addition to all other amounts required by the afore- said ordinance authorizing the City's Waterworks and Sewer System Revenue Refunding Bonds, Series 1957, dated May 15, 1957, and by the ordinances authorizing the Outstanding Bonds, the City, at the same time payments are made into the Bond Fund under the provisions of the aforesaid ordinances authorizing the Series 1957 bonds and the Outstanding Bonds, from the funds in the System Fund, shall pay into the Bond Fund each year beginning with the year in which the Bonds are issued, an amount equal to 100% of the amount required to meet the interest and principal payments falling due on and be- fore the next maturity date of the Bonds. In addition to such payments and Minutes, April 12, 1971 J J . 4976 in addition to the payments into the Bond Fund Reserve Account required by the aforesaid ordinance authorizing the Series 1957 bonds and the Outstanding Bonds, the City shall pay into the Bond Fund, from the System Fund, in each year 20% of the above required amount sufficient to meet the interest and after. Such additional payments shall be made into the Bond Fund Reserve Account established by the ordinance authorizing the Series 1957 bonds. The amount required to be paid into the Bond Fund in each year shall be in sub- stantially equal monthly payments from the monies in the System Fund after deductions have been made for payment of the reasonable cost of operating and maintaining the System for such month. If the revenues of the System in any month, after deduction for operation and maintenance, are insufficient to make the required payment into the Bond Fund, including the Bond Fund Reserve Account, then the mount of any deficiency in such payment shall be added to the amount otherwise required to be paid into the Bond Fund in the next month. Insofar as the Bonds of this issue are concerned, no payments other than the payments required by the ordinance authorizing the Series 1957 bonds need be made into the Contingencies Fund. Except as provided herein, all of the provisions of the aforesaid ordinance authorizing the Series 1957 bonds relating to the payment or deposits of monies into the Bond Fund and the Bond Fund Reserve Account and to the maintenance of said Bond Fund, including said Bond Fund Reserve Account, shall apply to pay- ments or deposits required by this ordinance and to the maintenance of said Bond Fund, including said Bond Fund Reserve Account. Section 10. There is hereby appropriated out of the proceeds of sale of the Bonds the sum of $1,250,000 for the purpose of improving and extending the City's sanitary sewer system and said proceeds of sale of the Bonds shall be used and expended for such purpose as set forth in the principal payments falling due on or before the next maturity date of the 1970. Bonds and the interest and principal payments on the Bonds for one year there- after. Such additional payments shall be made into the Bond Fund Reserve Account established by the ordinance authorizing the Series 1957 bonds. The amount required to be paid into the Bond Fund in each year shall be in sub- stantially equal monthly payments from the monies in the System Fund after deductions have been made for payment of the reasonable cost of operating and maintaining the System for such month. If the revenues of the System in any month, after deduction for operation and maintenance, are insufficient to make the required payment into the Bond Fund, including the Bond Fund Reserve Account, then the mount of any deficiency in such payment shall be added to the amount otherwise required to be paid into the Bond Fund in the next month. Insofar as the Bonds of this issue are concerned, no payments other than the payments required by the ordinance authorizing the Series 1957 bonds need be made into the Contingencies Fund. Except as provided herein, all of the provisions of the aforesaid ordinance authorizing the Series 1957 bonds relating to the payment or deposits of monies into the Bond Fund and the Bond Fund Reserve Account and to the maintenance of said Bond Fund, including said Bond Fund Reserve Account, shall apply to pay- ments or deposits required by this ordinance and to the maintenance of said Bond Fund, including said Bond Fund Reserve Account. Section 10. There is hereby appropriated out of the proceeds of sale of the Bonds the sum of $1,250,000 for the purpose of improving and extending the City's sanitary sewer system and said proceeds of sale of the Bonds shall be used and expended for such purpose as set forth in the of the current project for improving and extending the City's sanitary sewer system will not exceed $1,250,000; consequently, there is no neces- sity for any down payment and no such down payment is ordered to be made. It is hereby officially found and determined that the probable period of usefulness of the current project is forty years. ordinance adopted February 26, 1970, calling the bond election which was held in the City on March 17, 1970. It is estimated that the maximum cost of the current project for improving and extending the City's sanitary sewer system will not exceed $1,250,000; consequently, there is no neces- sity for any down payment and no such down payment is ordered to be made. It is hereby officially found and determined that the probable period of usefulness of the current project is forty years. bo 4977 Minutes, April 12, 1971 Section 11. The City represents, covenants, and agrees that: (a) The City will promptly proceed to utilize the proceeds of sale of the Bonds for the purpose, as stated on the face of each of the Bonds, for which the Bonds are to be issued. (b) No portion of the Bonds is issued as a part of an issue, all or a major portion of the proceeds of which are reasonably expected to be used directly or indirectly: (1) to acquire securities (within the meaning of Section 165[g] [2] [A] or [B] of the Internal Revenue Code) or obligations other than the obligations described in Sec- tion 103(a) (1) of the Internal Revenue Code, except for a tempo- rary period to the extent permitted by Section 103 (d) (4) (A) of the Internal Revenue Code, which may be reasonably expected at the time of the issuance of the Bonds to produce a yield over the term of the issue of the Bonds which is materially higher (taking into account any discount or premium) than the yield on the issue of the Bonds or (2) to replace funds which were used directly or indirectly to acquire securities or obligations described in subparagraph (1) above. (c) The City will take such action as may be neces- sary in accordance with the regulations prescribed from time to time by the Secretary of the Treasury or his delegate to carry out the purposes of Section 103(d) of the Internal Revenue Code so that no portion of the issue of the Bonds shall be classified as "Arbitrage Bonds" within the meaning of Section 103(d) of the Internal Revenue Code. (d) The City will not permit to be deposited to the Credit of any of the Funds herein mentioned or applied to the payment of the principal of or interest on the Bonds any proceeds from any grant, donation, or income received from the United States Government, whether pursuant to agreement or otherwise, if such deposit or ap- plication would result in interest payable on said bonds being includable in whole or in part in gross income for Federal income taxes. Section 12. The Mayor of said City is hereby authorized to have control of the Bonds and all necessary records and proceedings pertaining to the Bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the State of Texas and their re- gistration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Bonds, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller)shall manually sign the Comptroller's Registration Certificate prescribed herein to be Minutes, April 12, 1971 6 4978 to be printed and endorsed on each of the Bonds, and the seal of said Comptroller shall be impressed, or printed, or lithographed on each of the Bonds. Section 13. Said bonds are hereby sold and shall be delivered to plus a premium of $ subject to the unqualified approving opinions, as to the legality of said bonds, of the Attorney General of the State of Texas and of Vinson, Elkins, Searle 5 Smith, Houston, Texas, market attorneys; and it is hereby officially found, determined, and declared that said bonds are sold on the best terms and for the best price possible. Section 14. The Mayor and all other appropriate officers of the CITY OF BAYTOWN are hereby authorized and directed to do any and all things neces- sary or convenient to carry out the provisions of this ordinance. Section 15. This ordinance was read once by the City Council and shall take effect immediately. Section 16. It is hereby officially found and determined that the need of the City for such financing creates an emergency and an urgent public necessity for the holding, at the scheduled time, of the meeting of the City Council at which this ordinance is adopted and for the adoption of this or- dinance; and the NOTICE OF MEETING relating to said meeting and heretofore posted by the City Clerk, and the posting thereof, are hereby authorized, approved, adopted, ratified, and confirmed. PASSED, AUTHENTICATED, AND APPROVED this 12th day of April, 1971. e _ w W �'A Mayor CITY OF BAYTOWN, TEXAS ATTEST: 61 City Clerk CITY OF BAYTOWN, TEXAS for the par value thereof and accured interest thereon to date of delivery, plus a premium of $ subject to the unqualified approving opinions, as to the legality of said bonds, of the Attorney General of the State of Texas and of Vinson, Elkins, Searle 5 Smith, Houston, Texas, market attorneys; and it is hereby officially found, determined, and declared that said bonds are sold on the best terms and for the best price possible. Section 14. The Mayor and all other appropriate officers of the CITY OF BAYTOWN are hereby authorized and directed to do any and all things neces- sary or convenient to carry out the provisions of this ordinance. Section 15. This ordinance was read once by the City Council and shall take effect immediately. Section 16. It is hereby officially found and determined that the need of the City for such financing creates an emergency and an urgent public necessity for the holding, at the scheduled time, of the meeting of the City Council at which this ordinance is adopted and for the adoption of this or- dinance; and the NOTICE OF MEETING relating to said meeting and heretofore posted by the City Clerk, and the posting thereof, are hereby authorized, approved, adopted, ratified, and confirmed. PASSED, AUTHENTICATED, AND APPROVED this 12th day of April, 1971. e _ w W �'A Mayor CITY OF BAYTOWN, TEXAS (SEAL) See original - Exhibit attached. ATTEST: 61 City Clerk CITY OF BAYTOWN, TEXAS (SEAL) See original - Exhibit attached. 6 2 Minutes, April 12, 1971 4979 Ordinance - Sale of General Obligation Bonds Councilman Hullum moved to adopt Ordinance No. 1090 and accept the lowest bid of Republic National Bank of Dallas and Associates on the Genera]. Obligation Bonds. Councilman Evans seconder the motion. Th6 vote follows: Ayes: Councilmen Evans, Hullum, Stasney, Cannon and Kelley Mayor Walker Nays: None The caption of the ordinance follows: ORDINANCE NO. 1090 COVER SHEET CERTIFICATE FOR ORDINANCE AUTHORIZING ISSUANCE OF $6,500,000 GENERAL - OBLIGATION BONDS, SERIES 1971, APPROPRIATING $6,500,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS PROJECTS; AND CONTAINING OTHER PROVISIONS RELATING THERETO THE STATE OF TEXAS X COUNTIES OF HARRIS & CHAMBERS X CITY OF BAYTOWN X We, the undersigned officers of the City Council of the CITY OF BAYTOWN, hereby certify as follows: 1. The City Council of the City of Baytown, convened in Special MEETING, ON THE 12TH DAY OF APRIL, 1971, in the City Hall within said City; and the roll was called of the duly constituted officers and members of said Council and the City Clerk, to -wit: Glen Walker Mayor Ted Kloesel Councilman David Evans Councilman Leonard W. Stasney Councilman Allen Cannon Councilman Don M. Hullum Councilman Lamar Kelley Councilman Mrs. Edna Oliver City Clerk and all of said persons were present except the following absentees: Ted Kloesel, thus constituting a quorum. Whereupon, among other business, the following was transacted at said meeting: a written ORDINANCE AUTHORIZING ISSUANCE OF $6,500,000 GENERAL- OBLIGATION BONDS, SERIES 1971; APPROPRIATING $6,500,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS PROJECTS; AND CONTAINING OTHER PROVISIONS RELATING THERETO was duly introduced for the consideration of said Council and read in full. It was then duly moved and seconded that said ordinance be adopted; and, after due discussion, said motion, carrying with it the adoption of said ordinance, prevailed and carried by the following vote: Ayes: All members of said Council shown present above voted "Aye." Noes: None 2. That a true, full, and correct copy of the aforesaid ordinance adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; that said ordinance has been duly recorded in said Council's minutes of said meeting; that the above and fore- going paragraph is a true, full, and correct excerpt from said Council's minutes of said meeting pertaining to the adoption of said ordinance; that the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of said Council as indicated Minutes, April 12, 1971 G 4980 therein; that each of the officers and members of said Council was duly and suf- ficiently notified officially and personally, in advance, of the time, place, and purpose of the aforesaid meeting and that said ordinance would be introduced and considered for adoption at said meeting, and each of said officers and and members consented, in advance, to the holding of said meeting for such purpose; that said meeting was open to the public as required by law; and that public notice of the time, place, and subject of said meeting was given as required by Vernon's Article 6252 -17, as amended. 3. The Mayor of said City has approved, and hereby approves, the aforesaid ordinance; the Mayor and the City Clerk of said City have duly signed said ordinance; and the Mayor and City Clerk of said City hereby declare that their signing of this certificate shall also constitute the signing of the attached and following copy of said ordinance for all purposes. SIGNED AND SEALED the 12th day of April, 1971. 61� cam,, C "N. QZA City Clerk Mayor r 64 Minutes, April 12, 1971 4981 ORDINANCE NO. 1090 ORDINANCE AUTHORIZING ISSUANCE OF $6,500,000 GENERAL- OBLIGATION BONDS, SERIES 1971; APPROPRIATING $6,500,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS PROJECTS; AND CONTAINING OTHER PROVISIONS RELATING THERETO THE STATE OF TEXAS X COUNTIES OF HARRIS & CHAMBERS X CITY OF BAYTOWN X WHEREAS, the bonds hereinafter authorized were duly and favor- ably voted, as required by the Constitution and laws of the State of Texas, at an election held in the City on the 17th day of March, 1970; and WHEREAS, the City Council now deems it advisable to issue, sell, and deliver $6,500,000 bonds for the purposes shown in the following sche- dule as a portion and the first installment of bonds out of said total authorized bonds: WHEREAS, the City Council has determined that the remaining $2,600,000 authorized bonds may be issued, sold, and delivered at a later date; and WHEREAS, the City Council has caused a notice of sale of such bonds to be published in the TEXAS BOND REPORTER which is a publication carrying municipal -bond notices and devoted primarily to financial news and in the BAYTOWN SUN which is the official newspaper of the City, said notice having been published in each said publication more than ten days prior to the date set for the sale of said bonds; and WHEREAS, bids have been received pursuant to said publications of said notice and the City Council desires to authorize the issuance of said bonds and award the sale thereof on the basis of the best bid received; THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN THAT. Amount Amount Date Amount Heretofore Being Unissued Purpose Authorized Authorized Issued Issued Balance San. Sew. Sys. 3 -17 -70 $1,705,000 $ -0- $1,705,000 $ -0- Waterworks Sys. 3 -17 -70 2,010,000 -0- 2,010,000 -0- Streets 3 -17 -70 3,715,000 -0- 1,435,000 2,280,000 Park 3 -17 -70 920,000 -0- 600,000 320,000 Police Bldg. 3 -17 -70 500,000 -0- 500,000 -0- Fire Station 3 -17 -70 50,000 -0- 50,000 -0- Public Works 3 -17 -70 200,000 -0- 200,000 -0- $9,100,000 $ -0- $6,500,000 $2,600,000 WHEREAS, the City Council has determined that the remaining $2,600,000 authorized bonds may be issued, sold, and delivered at a later date; and WHEREAS, the City Council has caused a notice of sale of such bonds to be published in the TEXAS BOND REPORTER which is a publication carrying municipal -bond notices and devoted primarily to financial news and in the BAYTOWN SUN which is the official newspaper of the City, said notice having been published in each said publication more than ten days prior to the date set for the sale of said bonds; and WHEREAS, bids have been received pursuant to said publications of said notice and the City Council desires to authorize the issuance of said bonds and award the sale thereof on the basis of the best bid received; THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN THAT. minutes, April 12, 1971 6.5 . 4982 Section 1(a). The ordinance heretofore adopted by the City Council on the 26th day of February, 1970, authorizing the issuance of the bonds described in the preamble of this ordinance and calling an election therefor is hereby in all things ratified and confirmed. Section 1(b). All the matters and facts recited in the preamble hereof are hereby officially found to be true and correct. Section 2. The City's negotiable, serial, coupon bonds to be desig- nated CITY OF BAYTOWN, TEXAS, GENERAL - OBLIGATION BONDS, SERIES 1971, are hereby authorized to be issued and delivered in the principal amount of $6,500,000 for the following purposes: 1. $1,705,000 fox constructing improvements to the City's sanitary sewer system 2. $2,010,000 for constructing improvements to the City's waterworks system 3. $1,435,000 for constructing permanent street improvements 4. $600,000 for purchasing and /or improv- ing lands for park purposes 5. $500,000 for constructing and perman- ently equipping a police administration building 6. $50,000 for constructing improvements to and permanently equipping fire - station buildings 7. $200,000 for constructing, improving, and permanently equipping buildings and related permanent improvements for public -works purposes, including a new central public -works building and the existing automotive repair shop Section 3. Said bonds shall be dated April 15, 1971, shall be num- bered consecutively from 1 through 1,300, shall be in the denomination of $5,000 each, and shall mature serially on February 15 of each of the years, and in the amounts, respectively, as set forth in the following schedule: YEAR AMOUNT YEAR AMOUNT 1972 $125,000 1983 $250,000 1973 125,000 1984 300,000 1974 125,000 1985 300,000 1975 125,000 1986 300,000 1976 125,000 1987 500,000 1977 125,000 1988 500,000 1978 250,000 1989 550 -,000 1979 250,000 1990 600,000 1980 250,000 1991 600,000 1981 250,000 1992 600,000 1982 250,000 66 4983 Minutes, April 12, 1971 Said bonds may be redeemed prior to their scheduled maturities, at the op- tion of the City, on the dates stated and in the manner provided in the FORM OF BOND set forth in this ordinance. Section 4. Said bonds shall bear interest per annum at the fol- lowing rates, respectively, to -wit: Bonds maturing 1972 through 19 -, % Bonds maturing 19 through 19—, % Bonds maturing 19 through 19—, % Bonds maturing 19 through 19—, % Bonds maturing 19 through 19—, % Bonds maturing 19 through 19—, % evidenced by interest coupons which shall appertain to said bonds and which shall be payable on the dates indicated in the FORM OF BOND set forth in this ordinance. Section 5. Said bonds, and the interest coupons appertaining thereto, shall be payable, shall have the characteristics, and shall be signed and executed (and said bonds shall be sealed), all as provided and in the manner indicated in the FORM OF BOND set forth in this ordinance. Section 6. The form of said bonds, including the form of re- gistration certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of said bonds, and the form of the aforesaid interest coupons which shall appertain and be attached ini- tially to each of said bonds, shall be, respectively, substantially as follows: NO. FORM OF BOND $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTIES OF HARRIS AND CHAMBERS CITY OF BAYTOWN, TEXAS GENERAL -OBLIGATION BOND SERIES 1971 ON FEBRUARY 15, , the CITY OF BAYTOWN, in the Counties of April 12, 1971 - Minutes 67 4984 Harris and Chambers, in the State of Texas, promises to pay to bearer the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from the date hereof, at the rate of 4 per annum, evidenced by interest coupons payable February 15, 1972, and semiannually thereafter on each August 15 and February 15 while this bond is outstanding. The principal of this bond and the interest coupons appertaining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon at the CITIZENS NATIONAL BANK 6 TRUST CO., Baytown, Texas, or, at the option of the holder, at the FIRST CITY NATIONAL BANK OF HOUSTON, Houston, Texas, which banks shall be the paying agents for this series of bonds. THIS BOND is one of a series of negotiable, serial, coupon bonds, dated April 15, 1971, issued in the principal amount of $6,500,000 for the following purposes: 1. $1,705,000 for constructing improvements to the City's sanitary sewer system 2. $2,010,000 for constructing improvements to the City's waterworks system 3. $1,435,000 for constructing permanent street improvements 4. $600,000 for purchasing and /or improving lands for park purposes 5. $500,000 for constructing and permanently equipping a police administration building 6. $50,000 for constructing improvements to and permanently equipping firestation buildings 7. $200,000 for constructing, improving, and permanently equipping buildings and re- lated permanent improvements for public - works purposes, including a new central public -works building and the existing automotive repair shop in accordance with Chapter 1 and 7 Title 22, Revised Civil Statutes of Texas, as amended, and the home -rule charter of the City, and pursuant to an election held within the City on the 17th day of March, 1970, and authorized pursuant to an ordinance duly adopted by the City Council of the City entitled ORDINANCE AUTHORIZING ISSUANCE OF $6,500,000 GENERAL- OBLIGATION BONDS, SERIES 1971; APPROPRIATING $6,500,000' OF PROCEEDS OF SALE THEREOF FOR VARIOUS PRO- JECTS; AND CONTAINING OTHER PROVISIONS RELATING THERETO and finally passed on the 12th day of April, 1971, this bond being one of a series of bonds 6s 4985 Minutes, April 12, 1971 which constitutes a portion and the first installment of $9,100,000 gen- eral- obligation bonds voted at the aforesaid election. ON FEBRUARY 15, 1986, OR ON ANY INTEREST- PAYMENT DATE THEREAFTER, the outstanding bonds of this series may be redeemed prior to their scheduled maturities, at the option of the City, IN WHOLE, OR IN PART IN INVERSE NUMERICAL ORDER, for the principal amount thereof and accrued interest thereon to the date fixed for any such redemption. At least thirty days prior to the date fixed for any such redemption, the City shall cause a written notice of such redemption to be mailed to the banks at which said bonds are payable and published at least once in a financial publica- tion published in the City of New York, New York. By the date fixed for any such redemption, due provision shall be made with the paying agents for the payment of the required redemption price. If such written notice of redemption is published and if due provision for such payment is made, all as provided above, the bonds which are to be so redeemed thereby auto- matically shall be redeemed prior to their scheduled maturities; and they shall not be regarded as being outstanding except for the purpose of being paid by the paying agents with the funds so provided for such pay- ment. IT IS HEREBY certified, recited, and covenanted that this bond has been duly and validly voted, authorized, issued, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the issuance and delivery of this bond, have been performed, existed, and been done in accordance with law; that this bond is a general obligation of the City, issued on the full faith and credit thereof; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this bond, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in the City and have been pledged irrevocably for such payment within the limits pre- scribed by law. IN WITNESS WHEREOF, this bond and the interest coupons appertaining hereto have been signed with the facsimile signature of the Mayor of the City and countersigned with the facsimile signature of the City Clerk of the r Minutes, April 12, 1971 1 9 4986 City, and the official seal of the City has been duly impressed, or placed in facsimile, on this bond. COUNTERSIGNED: (SEAL) City Clerk FORM OF REGISTRATION CERTIFICATE: Mayor COMPTROLLER'S REGISTRATION CERTIFICATE 1 REGISTER NO. I hereby certify that this bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal this (SEAL) NO. Comptroller of Public Accounts of the State of Texas FORM OF INTEREST COUPON: ON 15, 19 , the CITY OF BAYTOWN, in the Counties of Harris and Chambers, State of Texas, promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, without exchange or collection charges to the bearer, unless due provision has been made for the redemption prior to maturity of the bond to which this coupon appertains, upon presentation and surrender of this interest coupon at the CITIZENS NATIONAL BANK 6 TRUST CO., Baytown, Texas, or, at the option of the holder, at the FIRST CITY NATIONAL BANK OF HOUSTON, Houston, Texas, said amount being interest due that day on the bond bearing the number hereinafter designated of that issue of CITY OF BAYTOWN, TEXAS, GENERAL - OBLIGATION BONDS, SERIES 1971, dated April 15, 1971. 170 4987 Minutes, April 12, 1971 Bond No. XXXXXXXXXXXXXXXXXXXXXXXXXX City Clerk XXXXXXXXXXXXXXXXXXXXXXXXX Mayor Section 7. A special fund or account, to be designated the "City of Baytown, Texas, General- obligation Bonds, Series 1971, Interest and Sinking Fund," is hereby created and shall be established and maintained by the City at an official depository bank of the City. The Interest and Sinking Fund shall be kept separate and apart from all other funds and ac- counts of the City and shall be used only for paying the interest on and principal of said bonds. All ad valorem taxes levied and collected for and on account of said bonds shall be deposited, as collected, to the credit of the Interest and Sinking Fund. During each year while any of said bonds or interest coupons appertaining thereto are outstanding and unpaid, the City Council of the City shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to pay the interest on said bonds as such interest comes due and to provide and maintain a sinking fund adequate to pay the principal of such bonds as such principal matures but never less than 2% of the original principal amount of said bonds as a sinking fund each year; and said tax shall be based on the latest approved tax rolls of the City, with full allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax are hereby levied, and are hereby ordered to be levied, against all taxable property in the City for each year while any of said bonds or interest coupons appertaining thereto are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of said bonds, as such interest comes due and such principal matures, are hereby pledged irrevocably for such payment within the limits prescribed by law. Section S. There is hereby appropriated out of the proceeds of sale of the bonds authorized by this ordinance the following sums for the following indicated purposes, respectively: Minutes, April 12, 1971 1 4988 1. $1,705,000 for constructing improvements to the City's sanitary sewer system 2. $2,010,000 for constructing improvements to the City's waterworks system 3. $1,435,000 for constructing permanent street improvements 4. $600,000 for purchasing and /or improving lands for park purposes 5. $500,000 for constructing and permanently equipping a police administration building 6. $50,000 for constructing improvements to and permanently equipping fire - station buildings 7. $200,000 for constructing, improving, and permanently equipping buildings and related permanent improvements for public -works purposes, including a new central public -works building and the existing automotive repair shop It is hereby estimated that the maximum cost, respectively, for each of the aforesaid projects will not exceed the amount named above for each such project, respectively; and there is no necessity for any down payment on these projects; and no such down payment is hereby ordered to be made. It is hereby officially found and determined that the probable period of usefulness of each of the aforesaid projects is forty years. Section 9. Out of the proceeds of sale of the bonds authorized by this ordinance the following sums are hereby ordered to be used and expended for the following indicated purposes, respectively: 1. $1,705,000 for constructing improvements to the City's sanitary sewer system 2. $2,010,000 for constructing improvements to the City's waterworks system 3. $1,435,000 for constructing permanent street improvements 4. $600,000 for purchasing and /or improving lands for park purposes 5. $500,000 for constructing and permanently equipping a police administration building 6. $50,000 for constructing improvements to and permanently equipping fire - station buildings 7. $200,000 for constructing, improving, and permanently equipping buildings and related permanent improvements for public -works pur- poses, including a new central public -works building and the existing automotive repair shop 72 Minutes, April 12, 1971 4989 as provided in the ordinance adopted on the 26th day of February, 1970, calling the bond election which was held in the City on the 17th day of March, 1970. Section 10. The City hereby specially covenants and agrees with the original purchasers of the SERIES 1971 bonds (the "Bonds ") and with the owners or holders from time to time of the Bonds that: 1. The City will promptly proceed to utilize the proceeds of the sale of the Bonds (other than accrued interest to date of delivery and any premium) for the purpose, as stated on the face of each of said Bonds, for which the Bonds are to be issued. 2. No portion of the Bonds is issued as a part of an issue, all or a major portion of the proceeds of which are reasonably expected to be used directly or indirectly: (a) to acquire securities (within the meaning of Section 165[g][2][A] Cr [B] of the Internal Revenue Code) or obligations (other than the obligations described in Section 103[a][1] of the Internal Revenue Code), except for a temporary period to the extent per- mitted by Section 103(d) (4) (A) of the Internal Re- venue Code, which may be reasonably expected at the time of the issuance of such issue of Bonds to produce a yield over the term of the issue of Bonds which is materially higher (taking into account any discount or premium) than the yield on the issue of Bonds or (b) to replace funds which were used directly or in- directly to acquire securities or obligations described in subparagraph (a) above. 3. The City will take such action as may be necessary in ac- cordance with regulations prescribed from time to time by the Secretary of the Treasury or his delegate to carry out the purposes of Section 103(d) of the Internal Revenue Code so that no portion of the issue of Bonds shall be classified as an "arbitrage bond" within the-meaning of Section 103(d) of the Internal Revenue Code. 4. The City will not permit to be deposited to the credit of any of the funds herein mentioned or applied to the pay- ment of the principal of or.interest on the Bonds any proceeds from any grant, donation, or income received from the United States Government, whether pursuant to agreement or otherwise, if such deposit or application would result in interest payable on said Bonds being includable in whole or in part in gross income for Federal income taxes. Section 11. The Mayor of said City is hereby authorized to have control of said bonds and all necessary records and ,proceedings pertaining to said bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the State of Texas and their re- gistration by the Comptroller of Public Accounts of the State of Texas. Minutes, April 12, 1971 73 4990 Upon registration of said bonds, the Comptroller of Public Accounts (or a deputy designated in writing to act for the Comptroller) shall manually sign the Comp- troller's Registration Certificate prescribed herein to be printed and endorsed on each bond; and the seal of the Comptroller shall be impressed, or placed in facsimile, on each of said bonds. rSection 12. Said bonds are hereby sold and shall be delivered to for the par value thereof and accrued interest thereon to date of delivery, plus a premium of $ , subject to the unqualified approving opinions, as to the legality of said bonds, of the Attorney General of the State of Texas and of Vinson, Elkins, Searle 6 Smith, Houston, Texas, market attorneys; and it is hereby officially found, determined, and declared that said bonds are sold on the best terms and for the best price possible. Section 13. The Mayor and all other appropriate officers of the CITY OF BAYTOWN are hereby authorized and directed to do any and all things necessary or convenient to carry out the provisions of this ordinance. Section 14. This ordinance was read once by the City Council and shall take effect immediately. Section 15. It is hereby officially found and determined that the need of the City for such financing creates an emergency and an urgent public necessity for the holding, at the scheduled time, of the meeting of the CITY COUNCIL at which this ordinance is adopted and for the adoption of this or- dinances; and the NOTICE OF MEETING relating to said meeting and heretofore posted by the City Clerk, and the posting thereof, are hereby authorized, approved, adopted, ratified, and confirmed. PASSED, AUTHENTICATED, AND APPROVED this 12th day of April, 1971. ed4 V� Mayor CITY OF BAYTOWN, TEXAS ATTEST: City Clerk CITY OF BAYTOWN, TEXAS 74 Minutes, April, 12, 1971 4991 Adjourn There being no further business to come before the Council, Councilman Kelley moved for the meeting to adjourn. Councilman Hullum seconded the motion. She ayes were unanimous and the Mayor declared the meeting adjourned. C. Glen Walker, Mayor ATTEST: Edna Oliver, City Clerk APPROVED: William R. Laughlin, City Attorney